Our team of experts have chosen those ISAs they believe to be Best Buys. A selection of those, for which we have arranged links are shown above, whilst products shown with a yellow background are sponsored products.
Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme up to a maximum level of protection of £85,000 per person per institution.
Interest you earn from a traditional savings account may be subject to income tax. Depending on how much savings interest you earn, up to 45% of any interest you earn may be taxable!
But, cash ISAs are different…
ISA is short for Individual Savings Account. The general principle is this: unlike normal savings accounts or investments, all interest earned from a cash ISA is completely tax-free.
If you earn over £1,000 in interest on other savings. the higher the rate of tax you pay, the more beneficial a cash ISA will be compared with a normal savings account. This table shows the rates you’d need to match a cash ISA with a non-ISA savings account:
Additional Rate Taxpayer (45%)
Cash ISAs can only have a maximum amount paid into them in each tax year, which runs between 6 April and the following 5 April.
In the 2016-17 tax year the ISA allowance is £15,240. You must pay your money in before 5 April 2017 to make the most of your 2016-17 ISA limit, and if you don’t use it, you lose it! Tax advantages will depend on your individual circumstances and may change in the future.
If you also have a stocks & shares ISA, or an Innovative Finance ISA, you may not be able to put this much into your cash ISA. Read our ISA guide to find out more, including the limits for investment ISAs and how you can split your money between different types of ISA.
You can transfer your existing cash ISA without losing the tax-free privileges. The two main reasons you’d do this are to:
Under current rules, this entire process should take no longer than 15 working days.
Don’t bypass this process by withdrawing your cash from your old ISA and putting it into a new one. If you withdraw cash from an ISA it loses its tax-free treatment. Plus, depending on the size of your savings pot, you may not be able to put all of your money into the new cash ISA if it exceeds your annual ISA allowance.
Our ISA Best Buys include those which allow you to transfer to a new ISA provider; just refer to the column "transfer in".
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